tag:blogger.com,1999:blog-31246093.post3199072154781825072..comments2024-03-28T12:29:39.157-07:00Comments on Graphic Firing Table: Three-house MonteFDChiefhttp://www.blogger.com/profile/10607785969510234092noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-31246093.post-79799020020525083452010-10-15T07:22:52.804-07:002010-10-15T07:22:52.804-07:00Ael: All the articles I read suggested that the am...Ael: All the articles I read suggested that the amount of interest a typical mortgage earns annually is pretty small - something like $500 or less on a $200K loan.<br /><br />Now I understand how bundling an assload of these together could be worth something; 1% of $500 times 6,000 might be worth some jack - but the nightmarish problem of keeping track of all that p-work! It doesn't seem worth it and sounds like it wasn't - which is why a hell of a lot of banks didn't do it right.<br /><br />And the other goofy thing is, as Pluto points out, we've done nothing to ensure this can't happen again.FDChiefhttps://www.blogger.com/profile/10607785969510234092noreply@blogger.comtag:blogger.com,1999:blog-31246093.post-30930838106265413102010-10-13T17:00:29.213-07:002010-10-13T17:00:29.213-07:00Securitizing mortgages is actually a very clever i...Securitizing mortgages is actually a very clever idea, at least in theory.<br /><br />There is a large pool of money looking for a safe place to park. There are a large number of people willing to handle other peoples money as long as some of it sticks to their palms.Aelhttps://www.blogger.com/profile/10788190394672505925noreply@blogger.comtag:blogger.com,1999:blog-31246093.post-42696619075477576062010-10-13T12:47:11.358-07:002010-10-13T12:47:11.358-07:00The thing I don't get is what these buyers wer...The thing I don't get is what these buyers were supposed to get out of these things?<br /><br />A piece of the mortgage interest?<br /><br />A part of the profit when the house sold?<br /><br />Like I said, a home loan seems like the simplest of financial transactions. Money goes out, interest comes back. How the hell do you "securitize" it? It's not like owning stock, where you get dividends, or interest, or even a piece of the company. WTF?FDChiefhttps://www.blogger.com/profile/10607785969510234092noreply@blogger.comtag:blogger.com,1999:blog-31246093.post-2433365914440328432010-10-13T09:50:07.919-07:002010-10-13T09:50:07.919-07:00The thing that fascinates me about this is that th...The thing that fascinates me about this is that the primary purchasers of "securitized" (pureed?) mortgages were supposed to be very smart businessmen themselves. <br /><br />We're talking pension fund managers (most of whom had lived through a couple of these blow-ups already), money managers for foreign governments, and the like. These people are supposedly neither stupid or gullible. Why did they buy these steaming piles of mortgage excrement?<br /><br />And the other thing that totally blows me away is that the recently passed financial reform package didn't do a thing to fix the basic problem AND the people who were bit last time are still buying these things! WHAT'S WRONG WITH THESE PEOPLE?<br /><br />And we'll all still be here in another couple of years when it happens again...Plutonoreply@blogger.comtag:blogger.com,1999:blog-31246093.post-68384703714048310182010-10-12T17:44:36.241-07:002010-10-12T17:44:36.241-07:00Squirrel!Squirrel!Aelhttps://www.blogger.com/profile/10788190394672505925noreply@blogger.com